Several global retailers and brands now plan to increase investments in their production facilities in Vietnam after it became clear that the country would significantly benefit from the Trans Pacific Partnership, once it reaches the concluding phase.

While American manufacturer and retailer of everyday apparels – HanesBrands has decided to increase its total investment in Vietnam to nearly $55 million by the end of 2015, up $11 million compared to last year, several other clothing and textile brands are exploring the destination. HanesBrands Vietnam is the largest consumer of US yarn in Southeast Asia, with over $1 billion of US yarn consumed by its sewing plants. It has two manufacturing plants in the northern province of Hung Yen and one plant in the central province of Thua Thien-Hue, with the annual capacity of 475 million units, accounting for 20 per cent of the group’s total production. Last year, with the inauguration of its third plant in Hung Yen, the company’s total exports surged to $334 million, and the figure is expected to reach $355 million this year.

However, the experts warn that as foreign direct investments in Vietnam increase, they will have an adverse impact on the country’s local manufacturing units. Smaller ones may have to shut shops, while big production houses may get reduced to small businesses.

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